Planning and Cybernatic Planning

Eka Darmadi Lim Gerry Geraldo Isa Tridjojo Reni

Topics
MCS as a Package (in a brief) Cybernatic Control

Planning Control
Long Range Action Planning

Budget Case Study

Topic

Introduction The Package

Management Control System Package

Introduction The Package

Management Control System Package

Today

Introduction The Package

Management Control System Package

Week 4

Introduction The Package

Management Control System Package

Week 5

Introduction The Package

Management Control System Package

Week 6

Introduction The Package

Management Control System Package

Week 7

Introduction The Package

Management Control System Package

Week 8

Topic

Introduction Cybernetic Controls

The Explanation of Cybernetic Control In organizations a cybernetic system can either be an information system or control system contingent. A cybernetic system would be an information and decision-support system

Introduction Cybernetic Controls

Cybernetic Controls Inside

Measuring System Performance Comparing that performance to Standards Modifying systems component

Feeding back information about unwanted

Cybernetic Controls
in Management Control System
Budgets Financial Measurement

Non-Financial Measurement
Hybrid

Topic

Introduction Planning Control

What is Planning? Decision making in advance or we can say planning is looking ahead and chalking out future courses of action to be followed.

Introduction Planning Control

Types of Planning? Long Range Planning Action Planning

Topic

Planning Control Long Range Planning

What is Long Range Planning? the goals and actions for the medium and long run are established. This has a more STRATEGIC focus

Planning Control Long Range Planning

Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. Simply put, strategic planning determines where an organization is going over the next year or more

Planning Control Long Range Planning

A Variety of Strategic Planning Models:

Goal Base Planning Issues Based Strategic

Planning Control Long Range Planning

Strategic planning involves both analysis of the past (using data cost, revenue, etc.) and forecast of the future Strategic planning provides a framework for the more detailed planning that takes place in the planning cycles that follow.

Six Iterative Steps of Strategic Plan Process

Develop a Corporate Vision, Mission, Objective

Understand the firms present position, SWOT

Decide on a corporate diversification strategy that identifies what business the firm

Decide on a strategy for each SBU

Tools for Strategic Plan Process

SWOT Analysis Balanced Scorecards

Scenario Planning

The Purpose of Strategic Plan For Organization

Clearly define the Purpose of Organization Communicate the Goals Develop a sense of Ownership A Base of Progress that can be Measured

Topic

Planning Control Action Planning

What is Action Planning? Action planning is a sequence of steps that must be taken, or activities that must be performed well, for a strategy to succeed

Planning Control Action Planning

The Importance of Action Planning? To help the company to reach their objective (the strategic planning)

Planning Control Action Planning

The Importance of Action Planning? To help the company to reach their objective (the strategic planning)

Planning Control Action Planning

Major Elements of Action Planning?

Specific Tasks Time Horizon Resource Allocation

Planning Control Action Planning

Main Step in Preparing Action Planning
Have a Clear Objective

List of Benefit (Goals)

Step by Step Clearly

Arrange the Steps in Logical

Planning Control Action Planning

Main Step in Preparing Action Planning

Try a Goal Map Think about The Problems Review the Progress

Topic

Budgeting
The process of budgeting is initiated with the establishment of specific targets of performance followed by executing plans to achieve such desired goals and from time to time comparing actual results with the targets of performances/goals.

Budgeting
Strategic planning also has a relation to budgeting because they both involve a planning but they have different activities in two processes. The budgeting process focuses on a single year

Budgeting
Strategic planning focuses on activities that extend over a period of several years. Strategic planning precedes budgeting and provides the framework within which the annual budget is developed.

The Uses of Budgeting

Fine Turning the Strategic Plan

Coordination
Assigning Responsibility Basis for performance Evaluation

Budget Preparation Process

Organization Issuance of Guidelines Initial Budget Proposal Negotiation

Budget Preparation Process

Review and Approval Budget Revisions Contingency Budgets

Budget Limitation

Budget based on Estimate

Budget must be adjusted to changes

Budget can be useful by Management Can not replace the management Function

Principal Terms of Successful Budget Program

Healthy Corporate Organization Adequate Accounting Systems Research and Analysis Support from Executive

The Uses of Budgeting

The budget acts as an effective management tool by providing a means of identifying and allocating limited resources (Revenues), and monitoring their use (Expenditures).

The Uses of Budgeting

The budget also is used to help prevent the company from overspending. Budget reports provide management with information on operations Allowing the organization to monitor and control spending and revenue collection while they are in progress.

Topic

Thank You
Eka Darmadi Lim Gerry Geraldo Isa Tridjojo Reni